The Importance Of Nonprofit Employee Handbooks
If you are starting up a nonprofit organization, you may be considering preparing a nonprofit employee handbook that communicates expectations for future workers. However, you may wonder if you really need a nonprofit employee handbook. Why an employee handbook is important and what to include in the employee handbook will vary by organization. If you are ready to discuss your organization’s unique needs and hear recommendations based on your situation, consider contacting a knowledgeable nonprofit lawyer from the Jennifer V. Abelaj Law Firm by calling 212-328-9568 to schedule a confidential consultation.
What Is a Nonprofit?
A nonprofit is an organization that exists for a social mission, not to earn a profit like a typical business. Most nonprofits are 501(c)(3) organizations, which refers to the portion of the United States Internal Revenue Code that provides for tax exemption for nonprofits that undertake specific social causes, according to the Internal Revenue Service (IRS). These causes can include research of a medical condition or protection of animals or children.
What Is a Nonprofit Employee Handbook?
Like employee handbooks for other companies, a nonprofit employee handbook communicates the expectations and policies of the workplace. The most significant difference is that the employees work for a nonprofit organization. Therefore, a greater need for confidentiality regarding the organization’s practices and donors may exist. An effective nonprofit employee handbook outlines the terms and conditions of employment and gives all workers a set of rules and a framework to follow.
Why Are Nonprofit Employee Handbooks Important?
Employee handbooks can help to protect a nonprofit organization from frivolous claims by helping the nonprofit set clear expectations for its employees. Employee handbooks list the established rules of the workplace to avoid confusion or ambiguity. Having a handbook for nonprofit employees also ensures that everyone is operating under the same set of rules and procedures. Additionally, employee handbooks may be necessary to obtain directors and officers liability (D&O) and employment practices liability insurances.
What To Include in a Nonprofit Employee Handbook
Each nonprofit organization and workplace is different. Therefore, policies that are appropriate for one organization may not be appropriate for another. Different policies may need to be in place to account for the employee makeup of an organization or its mission. An experienced nonprofit lawyer from the Jennifer V. Abelaj Law Firm may be able to help determine your organization’s needs. Depending on the circumstances, a lawyer may recommend including some of the following policies and provisions.
At-Will Employment Statement
Many employee handbooks begin with a statement that the existence of an employee handbook does not create an employment contract. This is because many states, including New York, have found that such publications can create an impression that employees can only be dismissed for cause, according to the Nonprofit Risk Management Center. An at-will statement clarifies that the employment relationship is at will and can, therefore, be severed at any time by either the employee or the employer.
General Work Policies
General work policies may include information about the daily minutiae of working at the organization. These policies may be related to:
- Work hours
- Tardy and absence policies
- Policies for requesting time off
- Dress code
- Overtime policy
- Policies against workplace harassment and discrimination
- Discipline policy
Confidentiality Agreement
Given the potential sensitivity of the information an organization may collect and store, a confidentiality agreement may be included in the employee handbook. This portion of the handbook can require employees to sign a statement agreeing that they will not disclose confidential information to anyone outside the organization or, in some cases, outside their department.
Benefits
A nonprofit employee handbook may also include the benefits provided to employees along with eligibility information. Depending on the organization, benefits may include:
- Medical insurance
- Dental and vision insurance
- Disability insurance
- Life insurance
- Flex time
- Retirement benefits
- Paid time off (PTO), sick time, and vacation time
- Annuity plans
- Referral incentives
Communication Policy
Many people use their personal devices for work purposes. A nonprofit may choose to allow this but protect the business by requiring employees to agree to use their devices in a safe manner. This can include virus protection and protection from hacking. Alternatively, an organization may provide devices to the employees, which would come with those protections installed, to use solely for work purposes.
Formal Performance Review Policy
An employee handbook may also describe the current roles for employees in the business and their job descriptions. Additionally, it can contain the procedure that will be used to formally review employees’ performance. This performance review may determine whether the employee remains employed with the company, is referred for remedial action, or receives a pay raise or promotion.
A formal performance review may include a standardized form and framework to review all employees in a consistent process. Depending on the organization, the review may consist of analyzing the following information:
- The employee’s attendance
- How the employee is helping to achieve the nonprofit’s mission
- The employee’s ability to work well with others
- The quality of the employee’s work
- The employee’s ability to meet deadlines and goals
- The employee’s communication skills
- How much in donations the employee has brought into the organization, if applicable
Personnel Records
A nonprofit employer may be in possession of sensitive information about its employees, including their identifying information and protected health information. An employee handbook may include clear policies about how the organization protects this information. Generally, health information must be kept secured separately from other personnel records. Additionally, sensitive documents, such as wage garnishment or other court orders, generally should not be included in an employee’s personnel record.
Documents that a nonprofit organization may be keeping as part of its personnel records may include:
- Applications, resumes, and cover letters
- Signed forms stating that the employee received the employee handbook
- Payment information
- Training and achievement records
- Records of time off requests and vacation leave
Contact a Nonprofit Lawyer for Help Today
If your nonprofit organization has or will have employees, knowing how to create a unique handbook is important. You will need to determine your organization’s unique needs and prepare a handbook that meets your nonprofit’s objectives. For answers to your questions about the importance of nonprofit employee handbooks, consider calling a knowledgeable nonprofit lawyer from the Jennifer V. Abelaj Law Firm at 212-328-9568 to schedule a confidential consultation today.
Nonprofit Bylaws – What to Include & Common Mistakes
Nonprofit organizations exist to meet the needs of the public and address critical issues in our society. While every nonprofit has its own unique mission, all nonprofits need a comprehensive set of bylaws to guide how their organization is governed. Not only do nonprofit bylaws serve to meet legal and regulatory requirements, but they also promote accountability and transparency in the organization, thereby establishing trust with donors and the public. If you need assistance with creating nonprofit bylaws or have any questions relating to your nonprofit, contact the Jennifer V. Abelaj Law Firm at 212-328-9568 to learn how an experienced attorney can help you.
What Are Nonprofit Bylaws?
Nonprofit bylaws are the main governing document for a nonprofit corporation. They are created when the organization is established to guide the decisions and actions of the board of directors. They can also help the organization avoid issues and resolve conflicts by clearly defining rules related to authority and governance. Furthermore, bylaws are a means for holding board members accountable for their actions. Board members that fail to follow a nonprofit’s bylaws are in breach of their duty to the organization and may be held liable for their actions.
In addition to being used internally, nonprofit bylaws are used by third parties to the organization, such as investors, landlords, and financial institutions. By reviewing a nonprofit’s bylaws, third parties can assess how responsibly the organization is being managed and whether or not they are willing to do business with them.
Nonprofit Bylaws –State and Federal Requirements
Nonprofit organizations are governed by state law. A nonprofit organization’s bylaws should be created as a supplement to the rules defined under its state’s corporation code. When a nonprofit’s bylaws do not address a specific issue, it is assumed that the nonprofit follows the applicable rules of the state.
Federal law does not require specific provisions or language to be included in nonprofit bylaws. A nonprofit organization applying for 501(c)(3) tax-exempt status is required to submit its bylaws for review to the IRS, however, as part of the application process.
A skilled nonprofit attorney can assist you in creating your nonprofit bylaws in compliance with all applicable state laws. They can also help you address specific provisions in your bylaws to improve your chances of being granted 501(c)(3) tax-exempt status by the IRS. Contact The Jennifer V. Abelaj Law Firm to discuss your needs with an experienced nonprofit attorney today.
What Do Nonprofit Bylaws Include?
The specific details of a nonprofit’s bylaws are determined by the organization’s unique mission and purpose. In general, however, nonprofit bylaws include:
- Name of the organization
- Location of the organization’s principal office
- Mission and purpose of the organization
- Details about the board of directors, including the number of members, their roles, and compensation
- Rules and procedures relating to electing board members as well as their term lengths and limits
- Details about board meetings, including frequency and procedures
- Quorum requirements, including the number of votes needed to make a decision
- Policies related to maintaining corporate records
- Policies relating to conflicts of interest among board members
- Limitations on the activities of the nonprofit
- Rules and procedures for amending bylaws
Updating Nonprofit Bylaws
Nonprofit bylaws should be updated if the organization goes through any major change, such as merging with another organization or making changes to the management structure. The rules related to amending bylaws, as defined in the existing bylaws, must be followed before any changes can be made. Nonprofit bylaws should also be reviewed at least once per year by the board of directors to ensure they are up-to-date, and all procedures are being followed correctly.
As outlined in the Compliance Guide for 501(c)(3) organizations, bylaw amendments must be reported to the IRS. Some states also require that bylaw amendments are reported.
Common Mistakes Related to Nonprofit Bylaws
Common mistakes with bylaws that nonprofit organizations make are related to:
Operational Policies and Procedures
Bylaws exist to provide an overview of how an organization is governed. Specific details related to day-to-day operations can change frequently and, therefore, should be included in a policy manual written for management purposes.
Provisions for Making Amendments
Many nonprofits make the mistake of including stringent rules around making amendments to existing bylaws, such as requiring an unattainable number of votes to make a change. The needs and realities of a nonprofit organization can change over time. If it is difficult for the board of directors to make changes to the organization’s governance rules and management structure in line with the current needs of the organization, the bylaws will likely become outdated and the organization may develop a culture that is resistant to change.
Reviewing Bylaws
Many nonprofits fail to review their bylaws regularly. By reviewing its bylaws at least annually, a nonprofit and its board members can protect themselves from making mistakes and being held liable for their actions. All board members should review their organization’s bylaws at least once a year to ensure their decisions and actions are aligned with all of its provisions. New board members should be provided with the organization’s bylaws as soon as they are appointed to their position and should be required to familiarize themselves with all of its provisions.
Learn How an Experienced Attorney Can Assist with Your Nonprofit Bylaws
Nonprofit bylaws are an essential component of an organization’s success. Creating provisions that serve to enhance the effectiveness of your organization requires an in-depth understanding of nonprofit organization governance. State-specific nonprofit bylaw requirements, as well as federal requirements relating to 501(c)(3) organizations, must also be considered. At Jennifer V. Abelaj Law Firm, we are committed to assisting nonprofit organizations with all of their legal needs so they can focus on achieving their mission and purpose. Contact our experienced legal team today for a free consultation to learn more.
Non-Profit Employee Handbook
Non-profit organizations are subject to the same employment laws as any other employer, from paying withholding taxes on employee wages to termination and unemployment compensation. Therefore, it is a good idea to have a non-profit employee handbook that outlines that organization’s policies, employee responsibilities and benefits, and other information that a new or existing employee would need to know about working there. At the same time, a non-profit organization may have unique policies and procedures that a for-profit employer may not have. Creating a comprehensive and effective employee handbook requires significant planning as well as understanding state and federal employment laws and other rules and regulations. Jennifer V. Abelaj Law Firm may be able to help you create your non-profit employee handbook. Speak with one of their experienced attorneys at 212-328-9568 to find out more.
What Should You Include in Your Non-Profit Employee Handbook?
One mistake that some employers make when creating an employee handbook is trying to create a policy for every possible thing that could ever happen. This creates an overly complicated, unwieldy, and enormous handbook that employees do not read. If they do not read it, there is a much greater chance they will unknowingly violate a policy or not follow a procedure, creating more work for management unnecessarily.
Instead, non-profits should include the basics that are common to most places of employment. Examples of what employers should consider including are:
- Notice & Disclaimer/Acknowledgement of Receipt
- Policy about employment at-will
- A statement regarding equal opportunity and anti-harassment
- Work authorization
- Employment classification policy
- Policy on unemployment compensation
- Overtime
- Leaves of absence, including parental leave
- Workplace violence/safety
- Conflict of interest
- Code of conduct
- Holidays and other time off
- Health, welfare, insurance benefits, payroll deductions, direct deposit,
- Programs for employee assistance
These are basic sections for an employee handbook. Some of them may not apply to every non-profit and some organizations may need other sections that are not mentioned here.
What Should You Not Include in a Non-Profit Employee Handbook?
When attempting to be comprehensive, employers can unintentionally include phrases, words, or concepts that can later become a problem. While non-profit employers should try to be thorough, there are some things they should not include in a non-profit employee handbook. A few examples include:
- Language that implies if the employee gets through an introductory period, they are less likely to be fired or that there are any other circumstances that make them less likely to be fired.
- The words “permanent employee.” The use of the word permanent would be language implying an employee cannot be fired. Instead, use terms such as “regular employee” to differentiate from temporary staff members and volunteers.
- Burying the disclaimer about at-will employment. This should be prominently placed at the beginning of the handbook to ensure it is seen, read, and understood.
- A narrowly defined list of reasons for termination or statements that imply or specifically state that termination can only be for cause.
- A list of disciplinary actions that can be interpreted as requiring that all or some steps must be followed before termination can occur. While you may need a list of disciplinary actions, it should be clear that offenses are handled individually and may or may not require the use of all disciplinary actions before termination.
This is not a full list. When creating your handbook, the experienced nonprofit attorneys at Jennifer V. Abelaj Law Firm may be able to help you determine which things to include and which to avoid so your handbook is comprehensive yet effective.
Why You Cannot Find and Use a Template As-Is
It is easy to search online and find many templates for employee handbooks. However, while a template can be a good starting point, it is not enough as it is. One reason not to use a template as it is, is that it may not be up to date. In addition, it may also:
- Not consider the non-profit’s state and local laws or use laws from another state that do not apply.
- Not be specific to the organization’s specific needs and therefore, be too general to be effective.
- May use overly complicated legal language that confuses employees instead of clarifying policies.
Non-profits can use a template to save themselves some time and work. This sample employee handbook from the National Council of Nonprofits may be a good beginning. Employers should go through the template they choose carefully and make sure to tailor the sections to their specific needs. They should also consider consulting with a lawyer to ensure they are including all the information they should and not including anything that may cause a problem in the future.
Tips to Ensure Your Handbook’s Effectiveness
Once employers have created a finished non-profit employee handbook, the work is not done. There are a few more things to do that will ensure the handbook’s effectiveness. Consider implementing the following:
- Have employees sign an acknowledgement of receipt and reading upon hire and each update.
- Review the handbook every 1-3 years and update when needed.
- Have standing personnel or a committee to review and revise so updates are consistent.
- Compare current practices to handbook policies and determine which should change. For example, if your dress code is business casual in the handbook, but everyone dresses casually, decide if you need to enforce the dress code or revise it to reflect the way everyone dresses.
- Remove or do not include irrelevant or rare policies that will not be used often. There may be issues that arise only once or twice in the lifetime of the organization if ever and therefore, do not need to be addressed in the handbook.
- Make sure it is not overly verbose or complicated.
- Do not combine policies for different groups. Give regular employees, independent contractors, and volunteers each their own handbooks.
- Offer training or team meetings to go over new and updated policies so employees have a chance to ask questions and gain a better understanding.
Is Your Non-Profit Employee Handbook Effective and Legally Compliant?
Whether you have an existing non-profit employee handbook that you would like to update or need to create one from scratch, an updated and clear handbook is a crucial component of a stable, productive work environment. If you need guidance to create or update your handbook, or you would simply like an experienced attorney to look it over for any legal issues that may arise, consider contacting the Jennifer V. Abelaj Law Firm at 212-328-9568 to find out how one of our experienced attorneys may be able to help.
How To Dissolve A Nonprofit Organization
Whether the plan is to merge with another organization or shut its doors permanently, dissolving a nonprofit organization can be an emotionally charged process. The legal process of terminating a nonprofit and distributing its assets can also be complex. Nonprofits must go through a process with the Internal Revenue Service (IRS) to dissolve legally according to the agency’s rules that govern how to dissolve a nonprofit organization. To learn more about how to dissolve a 501c3, consider reaching out to the Jennifer V. Abelaj Law Firm at 212-328-9568.
Reasons Why Nonprofits Dissolve
Nonprofit organizations dissolve for many reasons, but mergers are one of the most common reasons why nonprofits dissolve. When an individual 501c3 organization becomes part of another organization, it must dissolve. Nonprofits also dissolve when the organization no longer functions or when the Board of Directors votes to end the operation. According to the National Council of Nonprofits, an increase in dissolutions of small and mid-sized nonprofits occurred in recent years because of the coronavirus pandemic. Regardless of what causes the end of a nonprofit, dissolving a 501c3 organization is a significant decision, and the organization’s leaders should understand how to dissolve a nonprofit legally.
How To Dissolve a 501c3
When a nonprofit has performed its mission or would better serve its purposes by merging with another organization, the Board of Directors can decide to dissolve the organization. The Board must take an official vote. However, in cases where no voting members remain, the Board may dissolve the charity corporation on its own motion. That only begins the process. Nonprofit leaders must first make a plan of dissolution, which covers how to take care of the charity’s outstanding liabilities and assets. Then, the organization must resolve the remaining debts, distribute the organization’s assets, and file the appropriate forms with the IRS.
What Happens to the Money When a Nonprofit Dissolves?
In many cases, when a nonprofit terminates, the organization has assets. When a nonprofit terminates, the organization must first take care of its liabilities and pay off its debts. If there is money or other assets left over after paying the debts, the organization must distribute those assets legally. Board members and nonprofit leaders cannot distribute the organization’s money to themselves, their family members, or others. The only legal way to transfer a charity’s assets is to move them to other tax-exempt organizations.
How Will Nonprofit Assets Be Distributed if It Dissolves?
When a nonprofit dissolves, there are two options. The organization can distribute its assets to other nonprofits, or it can sell its assets. The nonprofit cannot give its assets away or transfer them to the leaders in the organization because of the nonprofit’s tax-exempt status.
Transferring Assets
In many cases, it may be desirable to transfer assets. If one organization terminates in order to merge with another organization, it may transfer its assets to the organization with which it intends to merge. When a charity closes without merging, however, it can choose another tax-exempt organization to which to donate its assets. In many cases, organizations elect to give their assets to organizations with similar themes, missions, or objectives. Tax-exempt organizations that are dissolving can choose to donate their funds to any tax-exempt organization, regardless of the existence of similar objectives.
Transferring Trademarks
Many organizations approaching dissolution will have trademarks. As trademarks are valuable assets, charities can transfer them to other tax-exempt groups. Often, nonprofit organizations may choose a recipient organization with a like mission that can benefit from owning existing trademark. When merging one nonprofit organization into another, the registered trademarks will generally transfer to the new organization.
Selling Assets
Although many organizations may see transferring assets as the more desirable choice, selling assets is another legal way to distribute assets when a 501c3 organization closes its doors. When a tax-exempt organization chooses to sell its assets, it must receive fair market value from the buyer. This rule exists to prevent organization leaders from circumventing the rule prohibiting personal asset transfers.
If the Board of Directors of a nonprofit votes to shut down an operation that owns many valuable assets, the temptation may be to suggest selling the assets at a loss to family and friends. However, selling assets at a loss would violate the law, as those assets would be considered gifts. A nonprofit’s tax-exempt status prevents it from being able to distribute assets as gifts. However, selling the assets at fair market value is permissible if transferring to another organization is not the best option.
How To Sell Assets
When an organization chooses to sell—rather than transfer—its assets, there are several steps to remember, including:
- Having assets appraised to ensure that the organization sells the assets for fair market value.
- Keeping a record of all the sales as physical assets become financial assets and must be distributed accordingly
IRS Forms
Terminating a nonprofit organization requires filing the appropriate forms with the IRS to officially end the organization. These forms include:
- Form 990—the form that tells the IRS that the organization is no longer operational. Three versions of Form 990 exist—the general form, 990-N, and 990-EZ—and the organization must choose the correct form based on its gross receipts
- Articles of dissolution or merger
- Plans to end or merge the nonprofit
If a charity fails to submit this paperwork correctly, it may run into problems. A lawyer experienced in non-profit dissolution can help an organization’s leaders avoid some of these issues when dissolving a nonprofit.
State-Specific Rules
In addition to complying with federal law, the dissolution of a nonprofit must also comply with state law. If you have nonprofit dissolution questions specific to New York and New Jersey, the experienced attorney at the Jennifer V. Abelaj Law Firm may be able to help.
Contact a Nonprofit Attorney for Help with Understanding How to Dissolve a Nonprofit
Navigating the end of an established nonprofit organization, whether for merger or other reasons, can be complex. If you are ready to end or merge a nonprofit organization and would like help from a knowledgeable nonprofit attorney, consider contacting the Jennifer V. Abelaj Law Firm by calling 212-328-9568 to schedule a consultation today and learn more about how to dissolve a nonprofit.
Should I Start A Nonprofit?
Starting a nonprofit can be an excellent opportunity for entrepreneurs looking to open a new business while helping people and making positive changes in the world around them. Strategizing and building a successful nonprofit requires a particular set of skills. Yet, from a company owner’s perspective, the experience is not significantly different from owning any other small business. Exploring the potential benefits and risks of starting a nonprofit organization can help you decide whether it is the right choice or if starting a traditional business would be the best option. When gathering information and determining if a nonprofit organization is the right path, you must consider various aspects. The essential factors include how you plan to fundraise and fund the business, your mission, and your proposed budget. When prospective business owners are thinking about a new business venture, they commonly wonder, should I start a nonprofit? For more information, call the Jennifer V. Abelaj Law Firm at 212-328-9568 to discuss your options.
The Benefits of Starting a Nonprofit Organization
The mission of nonprofit organizations is to work towards bettering the community and citizens who live there. Opening one is excellent for credibility because it demonstrates philanthropy, trustworthiness, and a desire to do good. Opening a nonprofit can mean helping others while also accommodating a comfortable life for the organization’s leaders and their families. There are many other benefits of starting a nonprofit organization, including:
Running a Nonprofit is a Rewarding Experience
Starting a nonprofit organization allows business owners to see first-hand how the company positively affects the community. For example, opening the doors of an education nonprofit enables business owners to share knowledge, educate others, and bring positive change.
Nonprofits are Eligible for Separate Entity Status
Nonprofit organizations are increasingly intersecting with LLCs and forming hybrid organizations. Traditional fundraising methods are the cornerstone of nonprofits. Yet, many struggle to raise sufficient funding they need to help their cause. Therefore, organizations are strategically restructuring to include for-profit ventures to raise additional financing without losing their nonprofit status and tax exemptions. When businesses structure correctly, the Internal Revenue Service allows them to operate under both statutes. A knowledgeable attorney at the Jennifer V. Abelaj Law Firm is available to answer questions and help you answer the question: Should I start a nonprofit?
Nonprofits have Limited Liability Protection (LLC)
Nonprofits have the same liability protections as other LLCs and corporations. The protection means that tax laws cannot hold organization leaders or team members personally liable for the nonprofit’s debt.
There are Many Tax-Exemptions and Deductions
The nonprofit association could qualify for tax-exempt status if the business meets specific requirements. Further, there are various other tax exemptions the federal government offers. Under the Internal Revenue Code Section 501(c)(3), the nonprofit is exempt from paying federal income taxes, and donations are tax-deductible for the donors. The requirements for this exemption include being an organization that benefits a charitable, religious, scientific, literary, or educational cause.
Nonprofit Organizations are Eligible for Public and Private Grants
Public and private grantmakers typically fund nonprofit organizations that qualify for public charity status with the internal revenue service. Nonprofit organizations are eligible for many grants when many other businesses are not eligible to apply. Even for the grants open to for-profit and nonprofit organizations, the latter will take preference in most cases.
Incorporated Nonprofits can Offer Benefits to Employees
When nonprofit organizations choose to incorporate, they can offer benefits to employees, including health insurance, retirement, and pensions. Nonprofit organization team members typically love their work and dedicate themselves to the cause. They realize the work will not make them wealthy but appreciate helping others and the community. Offering them the benefits means showing them gratitude and appreciation.
A Successful Nonprofit Could Mean Leaving Behind a Lasting Legacy
Opening a successful nonprofit business can mean that you are a successful business owner and an important person in history. A nonprofit organization can have a meaningful and lasting impact on people’s lives that they remember for years to come.
The Disadvantages of Opening a Nonprofit
People commonly see a community’s needs and decide they would like to start a nonprofit organization. Yet, it is essential to note that creating and successfully sustaining a nonprofit business are challenging tasks. It can take years of determination to get the organization running effectively. According to the nonprofit and grant information knowledge base from Candid Learning, the cost of opening a nonprofit organization is often steep. Organizing the business takes plenty of time, money, and effort. Business owners will also need to pay fees to apply for the tax exemption and incorporation. Many also find that hiring an accountant, attorney, or other consultants is also necessary for ensuring they navigate the process correctly. Other disadvantages of starting a nonprofit include:
- Significant paperwork and detailed record-keeping, more so than with for-profit businesses
- Articles of incorporation and bylaws limit personal control of individual owners
- Nonprofit organizations always face public scrutiny
The most significant disadvantage is the funding limitations typical for nonprofit organizations. Fundraising problems can often be a nonprofit’s most considerable setback and challenge. It is not uncommon for them to find it necessary to discontinue services and support they provide to those in need when they cannot meet fundraising requirements to keep the business running successfully. Grant writer services are also expensive but crucial for obtaining the grants needed to keep the doors open.
Call an Experienced Nonprofit Lawyer Today
Tax-exempt status and legal liability elimination sound like the right way to go when starting a new organization. However, prospective business owners must consider many crucial elements of running a nonprofit, including raising funds and attracting the right talent with competitive wages and benefits. Running a successful nonprofit organization comes with many challenges. Yet, it can be the most rewarding business venture you can experience with the proper planning and preparation. For more information on, should I start a nonprofit? Call the Jennifer V. Abelaj Law Firm at 212-328-9568. A knowledgeable nonprofit lawyer can help go over the benefits and disadvantages to help you figure out the best option for your new business.
Top 5 Excuses For Avoiding Estate Planning
It is vital to understand that every adult needs estate planning. While people make many excuses for putting it off, the cost of failing to plan can lead to many negative consequences. Many people neglect estate planning for many reasons, from being too young to worry about estate planning to not having the time. Yet, without an estate plan, you cannot protect your loved ones and beneficiaries from turmoil, conflict, and the stress of spending time in court after your death. Solid estate planning entails careful decision-making and organization, including healthcare directives, beneficiary designation, drafting and execution of legal contracts, and regular review and revisions. To avoid these popular excuses for avoiding estate planning, contact the experienced and compassionate estate planning attorney at Jennifer V. Abelaj Law Firm at 212-328-9568.
The Top 5 Excuses People Use To Avoid Estate Planning
There are many reasons that people avoid, delay, or fail to plan an estate altogether.
1. You Think You Are Too Young for an Estate Plan
The most common reason people avoid estate planning is believing they are too young, and that estate planning is only for the elderly. However, everyone needs to prepare for their future and what will happen after they are gone. The best time to prepare and begin estate planning is when a person becomes a legal adult. Many are familiar with the portion of estate planning that involves deciding what will happen to a person’s assets after they are deceased. Yet, an efficient estate plan also means preparing for how loved ones will handle assets if an accident or illness leads to incapacitation.
The deterioration of mental health can impair a person’s ability to communicate desires with healthcare professionals. In other cases, an unexpected accident can leave a person without the ability to make their own financial or medical decisions. When individuals designate a person to handle tough decisions with their best interest in mind, they know they will receive the quality and type of care they wish to receive. An attorney at Jennifer V. Abelaj Law Firm could help prepare an appropriate estate plan for a younger person, and help them avoid making this specific excuse for avoiding estate planning.
2. You Think You Do Not Have Enough Assets
A Last Will and Testament (will) may not be necessary for single young adults who do not have children or many assets. However, selecting beneficiaries for life insurance and other intangible assets is crucial. It is also wise for everyone to have a durable and medical power of attorney to designate decision-making authority in the event of an accident or event that limits mental capacity. A living will is also an important estate planning tool for selecting preferences in the case of incapacitation. Finally, establishing solid HIPAA directives will allow those you choose immediate access to private medical records.
3. You Think Estate Planning is Too Expensive
Many are under the impression that estate planning is expensive and only for the wealthy. Contrary to that belief, a will or other legal contracts and documents are relatively inexpensive. Moreover, fewer assets often mean planning the estate will be less complex, and the expenses to plan will be much lower than those with multiple properties and wealth.
Estate planning is not too expensive, and ultimately, it should save money in the long run through tax deductions and avoiding the high cost of probate. While there are some fees, the estate holder will need to cover, the benefits of estate planning significantly outweigh the adverse consequences.
4. You Think Your Heirs Will Handle Everything Peacefully
Everyone likes to believe their family will peacefully handle the distribution of all assets when they are gone. Unfortunately, leaving the heirs to deal with splitting assets and probate often leads to disagreements, fighting amongst family members, and even some losing their inheritance altogether.
Sadly, this often leads to many internal family problems. When one person ends up controlling all assets, the money is theirs, and there is no way for other heirs to enforce how they share or spend it legally. There are also issues when the individual with total control has debt. When the assets are in one person’s name, creditors could freeze or take them to pay off outstanding balances. The sound decision is setting up the estate with explicit instructions on splitting the money between heirs and desires on how they spend it in the future. This also gives a person full authority and control in the decision-making process, and peace knowing that their wishes will be followed after their death.
5. You Think Estate Planning Takes Too Long
Taking the time to plan and prepare now will save time for your loved ones after you pass away. A comprehensive estate plan involves simplifying the legal work now so beneficiaries do not have to in the event of an untimely injury, illness, or death. Preparing an estate plan will save them from enduring a lengthy and costly probate process while they are grieving.
Contact an Experienced Estate Planning Lawyer Today
A diligent estate planning attorney can help you strategize and prepare an effective plan that protects your legacy and the future of your loved ones. While it is common to put estate planning off or avoid it together, every legal adult should plan and prepare for the future. Carefully planning your estate is the only way to ensure you receive the healthcare you wish to receive if you cannot make important decisions and choose what happens to your assets. For more information on the excuses for avoiding estate planning, and how to overcome them effectively, contact the Jennifer V. Abelaj Law Firm at 212-328-9568. An experienced estate planning lawyer can help answer your questions and work with you to prepare an appropriate and comprehensive estate plan.
Understanding the Form 1023
Forming a nonprofit organization (with 501c3 tax exemption) is a worthy pursuit that might even make the world a better place, but it is important to understand that the process can be legally complex and challenging. A first step is to file the IRS Form 1023, which can feel overwhelming for a person unfamiliar with this tax document. If you are starting a nonprofit organization, consider visiting with the experienced nonprofit attorney Jennifer V. Abelaj at the Jennifer V. Abelaj Law Firm (212-328-9568) in New York. Jennifer V. Abelaj is an experienced nonprofit law attorney who can help you create, structure, and launch the successful nonprofit business of your dreams.
Form 1023 or 1023EZ
The Form 1023 is a complicated document that exceeds 60 pages (including instructions). Some applicants for tax-free status, however, are eligible to file the Form 1023-EZ, which allows a more streamlined process. The Internal Revenue Service provides highly specific eligibility requirements for filing the EZ version of Form 1023. You must be able to answer no to a variety of important questions that include the following in order to proceed with the Form 1023-EZ:
- Do you expect the organization’s gross receipts to exceed $50,000 in any of the next 3 years?
- Have the organization’s gross receipts exceeded $50,000 in any of the past 3 years?
- Does the fair market value of the organization’s total assets exceed $250,000?
- Was the organization formed under another country’s laws?
- Is the organization’s mailing address in a foreign country?
- Is the organization controlled by or is the organization a successor to an entity that was suspended of tax-exempt status as a result of being identified as a terrorist organization?
- Is the organization structured as any kind of entity other than a corporation, an unincorporated association, or a trust?
- Is the organization formed as an entity that is for profit?
- Is the organization a successor of an entity that is for profit?
- Has the organization been previously revoked or is it a successor to a previously revoked organization (other than revocation for failure to file a Form 990-series for three years running)?
- Is the organization currently (or was it previously) recognized as being tax exempt under any other section of IRC 501(a)?
- Is the organization a church that is recognized under the IRS’s understanding of the term?
- Is the organization a school, university, or college as defined by the IRS?
- Is the organization engaged in medical research or is it a hospital as defined by the IRS?
- Is the organization an agricultural research organization as defined by the IRS?
Correctly filing the correct IRS form is paramount, and Jennifer V. Abelaj at the Jennifer V. Abelaj Law Firm (212-328-9568) in New York is a dedicated nonprofit law attorney who has the experience and legal understanding to help you master your Form 1023 – in pursuit of tax-exempt status for your organization.
If You Do Not Qualify to File Form 1023-EZ
If you do not qualify to file Form 1023-EZ, you will need to move forward with the lengthier standard form. The difference between the two include the following requirements for the standard Form 1023:
- You will need to provide a written narrative that describes your organization in detail.
- You will need to provide a detailed description of your organization’s activities.
- You will need to provide more detailed information about your organization’s board of directors.
- You will need to provide more detailed information about your organization’s current, past, and projected financials.
There are also more specific requirements related to your organization’s overall structure that will need to be addressed in the standard Form 1023.
Preparing to File Form 1023
In order to file Form 1023 with the IRS, you will need to engage in a range of preliminary activities that include (as applicable) obtaining a federal employer identification number (EIN), incorporating your organization, drafting your bylaws, and making financial projections. You will also need to include each of the following (as applicable) in your application packet:
- Your Form 1023 checklist
- Your application, which includes Form 1023 and Schedules A through H (as applicable)
- Accurate financial statements (or well-considered projections)
- Your organization’s organizing document (your Articles of Incorporation for example)
- All the amendments to your organization’s organizing document (provided in chronological order)
- A Power of Attorney and Declaration of Representative (as applicable)
- Tax Information Authorization (as applicable)
- Your organization’s bylaws – or other rules of operation – and any amendments thereto
- All other applicable attachments, including financial information, printed materials and publications, necessary explanations, and anything else that applies
It is important to mark each or your packet’s inclusions with your organization’s name and EIN.
The Application Process
Applying for tax-exempt status with the Form 1023 is a lengthy process (the IRS estimates that it takes about 100 hours) but failing to do so properly can protract the process further – or can void your application entirely. Working closely with an experienced nonprofit law attorney from the outset is the surest means of expediting the process and helping to ensure that you are successful in your endeavor. Once the IRS makes its decisions regarding your organization’s exemption status, it will inform you with in a Determination Letter.
Discuss Your Organization’s Tax-Exempt Status with an Experienced New York Nonprofit Law Attorney Today
Starting a nonprofit organization can prove exceptionally rewarding, but obtaining tax-exempt status is a challenging process. Forming a tax-exempt organization hinges on your ability to meet the federal government’s requirements and on your ability to successfully file the IRS Form 1023, which is a complicated and lengthy endeavor. Jennifer V. Abelaj at the Jennifer V. Abelaj Law Firm is an accomplished New York nonprofit law attorney who has a wealth of experience successfully supporting clients like you in their quests to create socially aware nonprofit organizations that promote the better good. Your efforts toward this end are admirable and important, and we are here to help you achieve your goals. For more information about what we can do for you, please do not hesitate to reach out by contacting or calling us at 212-328-9568 today.
Does Your Organization Meet The Criteria For An Educational 501(c)(3)?
Section 501(c)(3) is a part of the United States Internal Revenue Code that allows nonprofit organizations to apply for tax exemption if they meet certain requirements. The organization must meet one of the exempt purposes designated by the Internal Revenue Code, including educational purposes. Educational purposes can be defined broadly and may apply to organizations other than traditional schools. In addition, not all educational organizations necessarily qualify for tax-exempt status. For an organization to apply for tax-exempt status based on educational purposes, its leaders should make sure that it meets the criteria for an educational 501(c)(3). While obtaining tax-exempt status for your nonprofit can be complex, an experienced nonprofit lawyer can provide useful guidance throughout the process. If you want to learn more about educational 501(c)(3)s or are ready to file for your nonprofit to receive this status, consider contacting the Jennifer V. Abelaj Law Firm by calling 212-328-9568 to schedule a consultation.
What Qualifies as an Educational Organization?
The term “educational purposes” is not specifically defined in the Internal Revenue Code. Rather, the Internal Revenue Service (IRS) refers to Section 1.501 (3)-1(d)(3)(i) of the Code of Federal Regulations for their definition, according to the United States Government Publishing Office, which states that an organization must meet one of the following two requirements to qualify:
- Provide instruction and training of individuals to improve or develop their capabilities or
- Instruct the public regarding subjects useful to the individual that benefit the community
This idea is further elaborated in the same statute’s definition of “charitable,” which includes advancing education as one qualifier. These broadly defined terms allow some organizations that do not directly work in education to claim tax-exempt status based on educational purposes, such as providing a support service to educational organizations. However, educational organizations and other 501(c)(3) organizations will not qualify for exemption if a substantial part of their activities is related to non-exempt purposes.
IRS Restrictions for All 501(c)(3) Organizations
In addition to meeting the criteria for “educational purposes,” educational 501(c)(3) organizations are required to meet the same requirements, according to the Internal Revenue Service (IRS), as all other types of tax-exempt non-profits, including that:
- The nonprofit may not be organized or operated for the benefit of private interests
- None of the organization’s earnings may be distributed to private shareholders or individuals
- The organization may not dedicate a substantial amount of its activities toward influencing legislation, nor participate in any political campaign activities
In addition to meeting these requirements when applying for tax-exempt status, nonprofit organizations must maintain these standards at all times in order to maintain their status. Those who violate the IRS requirements may have their tax-exempt status revoked and could face serious financial penalties. If you have questions about meeting the criteria for an educational 501(c)(3) organization, an experienced nonprofit lawyer at the Jennifer V. Abelaj Law Firm may be able to help.
Is the Organization a Public Charity or Private Foundation?
The IRS classifies each Section 501(c)(3) organization as either a public charity or a private foundation. Educational organizations should be aware of the distinction between these two categories, as each carries its own rules and regulations. The central distinction is the organization’s source of funding. Private foundations are typically under the control of an individual, family, or corporation, and most of their funding comes from a handful of donors and investments. Conversely, public charities generally receive their financial support from a large network of public donators and fundraising.
The vast majority of educational and other Section 501(c)(3) organizations are public charities. Schools automatically qualify as public charities, while certain other types of educational organizations may need to prove that they are publicly supported. In most cases, demonstrating this proof involves showing that at least one third of the organization’s support comes from donations, membership fees, or gross receipts from activities directly related to educational purposes. Those who provide this proof and meet all other criteria may qualify as tax-exempt public charities.
What Types of Educational Organizations Qualify?
Schools are the most obvious example of an educational organization, but there are several types of educational activities that could qualify an organization for tax-exempt status under Section 501(c)(3). To qualify, the organization must serve the public good by providing educational activities related to instruction and training. For example, a coding boot camp would be obligated to help its students acquire new skills and become more proficient at coding. If the camp is operated to educate the community without any focus on private interests and meets all other requirements, it could qualify as an educational 501(c)(3) organization.
There are just a few common examples of nonprofit educational organizations. IRS evaluations of exempt purposes are subjective, but several types of organizations could qualify as long as they are dedicated to providing instruction and training without seeking profits. Some of the other types of nonprofit businesses that could qualify for tax-exempt status under Section 501(c)(3) include:
- Trade schools
- Kindergartens and daycares
- Public and private universities
- Museums
- Planetariums
- Public libraries
- Science centers
Applying for 501(c)(3) Classification as an Educational Nonprofit
Those who are in the beginning stages of forming an educational nonprofit will need to meet several requirements before applying for 501(c)(3) tax-exempt status. Extensive paperwork must be filed to incorporate the organization with federal and state governments, and regulations may vary from state to state. Once incorporated, the organization must meet all requirements for 501(c)(3) and provide thorough documentation proving that it meets these requirements. These documents must be submitted along with the IRS Form 1023-series application.
Contact an Experienced Nonprofit Lawyer To Learn More
Applying for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code is a complicated and lengthy process that requires strict adherence to all guidelines. Filing this application is critical to the formation of nonprofits. While organizations may be able to handle the steps internally, many seek help from experienced nonprofit attorneys who understand what is required to successfully obtain tax-exempt status for their clients. If you have questions regarding the criteria for an educational 501(c)(3) or another nonprofit matter, consider contacting a knowledgeable nonprofit lawyer at the Jennifer V. Abelaj Law Firm by calling 212-328-9568 to schedule a consultation today.
Estate Planning And Divorce
Estate planning is something that everyone should take the time to do. However, because it is not very pleasant to think about one’s eventual demise, most people either avoid the task altogether or create an estate plan and then try to forget about it. Unfortunately, there are certain life events that require people to update or completely rewrite their estate plans. Divorce is one of those life events. Married people typically leave most, if not all, of their estates to their spouses. However, this is likely not what they want after a divorce. Whether you are only considering divorce, divorcing, or recently divorced, it may be time to reevaluate your estate plan. If you have questions about estate planning and divorce, consider contacting a skilled New York estate planning attorney at Jennifer V. Abelaj Law Firm by calling 212-328-9568 to learn more about your options.
Estate Planning Documents To Update
When thinking about estate planning, most people immediately think of a Last Will and Testament (will). A will may be a central component of an estate plan, but there are many other documents that should also be included. When updating an estate plan due to divorce, make sure to think about your:
- Wills—People may want to change bequests, the executor, guardianship for minor children, or other details after a divorce. In many cases, it can be easier to start fresh with a new will than to try to update an existing one
- Power of attorney—Most people do not want a former spouse to have power of attorney over any part of their lives. Therefore, after divorce, a new power of attorney can be executed naming an adult child, sibling, parent, or other trusted person. There may also be more than one power of attorney, including durable, medical, and financial
- Health care proxy—Many people authorize a health care proxy to make health care decisions on their behalf if they are unable to make those decisions themselves. Married couples often authorize each other as healthcare proxies. However, most people would prefer to authorize another trusted person for that position after a divorce
- Revocable trusts—If a revocable trust is part of a person’s estate plan, he or she may want to revisit estate planning after divorce. Most people remove their former spouse, as well as any of the former spouse’s relatives, from the revocable trust
- Beneficiaries—Most estate plans include a variety of life insurance policies, retirement accounts, pensions, pay-on-death and transfer-on-death accounts, and more that have designated beneficiaries. These accounts do not pass through the will to be given to heirs but are, instead, given directly to the beneficiary named on the policy or account and should, therefore, be updated after a divorce
Most estate planning documents can be updated before the divorce is final. However, some documents may need to wait until the divorce is final unless permission from the spouse is given.
Does Divorce Invalidate a Will?
In New York, divorce does not invalidate a will. However, according to the Nassau County Bar Association, divorce or legal separation will revoke the revocable dispositions of property made to a former spouse. This includes but is not limited to dispositions in a will and designations as beneficiaries on bank accounts, life insurance policies, pensions, and/or revocable trusts. Any appointments of the former spouse, such as executor, trustee, guardian, health care agent, or attorney-in-fact, are also revoked. The key factor is that the instrument, or document, must be revocable, which means that if a person could have revoked it during life, he or she would have. When one spouse passes away, any existing documents that were revoked due to the divorce are treated as though the former spouse pre-deceased him or her. The alternate executor would be assigned the task of probating the will, and assets would transfer to the designated alternate beneficiaries.
Bequests and appointments, such as guardianship, to anyone other than the former spouse, will remain valid before, during, and after a divorce. The revocation applies only to the former spouse. Therefore, if your current estate plan leaves assets to your former spouse’s parents, children from a previous relationship, siblings, or others, you will need to update your estate plan if you wish to remove these beneficiaries.
Can a Divorced Spouse Inherit?
There is a general rule of revocation that prevents a divorced spouse from inheriting after his or her former spouse passes away. However, there are two exceptions to this general rule, including:
- A legal order to provide
- A deliberate choice to include the divorced spouse
A Legal Order To Provide
In some cases, a divorce decree or legal separation agreement will require that certain benefits be maintained for a former spouse. Any legal order that requires providing for a former spouse would supersede the law that typically prevents a divorced spouse from inheriting. If you have a legal order that requires you to provide certain benefits to a former spouse, a skilled estate planning lawyer at the Jennifer V. Abelaj Law Firm may be able to help you with estate planning and divorce questions to ensure that you comply with the order.
A Deliberate Choice To Include the Divorced Spouse
Some divorcing couples remain on friendly terms and, therefore, may choose to include their former spouses in their wills or as beneficiaries for life insurance policies, retirement accounts, or trusts after the divorce is final. In these situations, the former spouses may want to create new documents after the divorce with updated dates so that the intent to include the former spouse is clear.
What If There Is No Will?
In the event that someone passes away without a will and there is a final judgment of divorce, the divorced spouse has forfeited any rights to inherit or act as administrator of the estate. However, not having a will may complicate matters for the deceased’s heirs. Therefore, everyone should have at least a basic estate plan that includes a will.
What Happens If You Die Before the Divorce Is Final?
Once a divorce is final, any provisions in the will that specifically benefit the former spouse are voided. If one spouse dies before the divorce is made final, however, the situation is slightly different. First, before the divorce is final, one spouse cannot completely disinherit the other. According to the New York estates, powers, and trust law, a surviving spouse is given what is called an “elective share.” This is an automatic right to a certain portion of the estate. However, this “right of election” or elective share can be eliminated using a separation agreement.
Contact an Estate Planning Attorney for Help With Estate Planning and Divorce
Estate planning and divorce can be complex. Even in a situation where both spouses agree on every point, a divorce is a major change that requires many additional changes. If you and your spouse are divorcing and you are ready to update your estate plan, consider contacting a knowledgeable estate planning attorney at the Jennifer V. Abelaj Law Firm by calling 212-328-9568 to schedule a consultation and review your options for creating a new or updated estate plan after divorce.
Protecting Non-Profit Volunteers From Liability
Many nonprofit organizations rely on volunteers to accomplish their goals and serve their causes. Just like workplaces with paid employees, nonprofits that use volunteers need to be aware of potential liabilities related to these activities. Fortunately, the federal Volunteer Protection Act of 1997 protects volunteers from liability in many situations, and several states have their own volunteer liability protection laws. However, volunteer liability is a complicated legal concept, and there are some circumstances in which a volunteer can be held liable for injuries or property damage. To learn more about protecting nonprofit volunteers from liability, and to ensure that your nonprofit organization is legally protected, contact the nonprofit lawyers of the Jennifer V. Abelaj Law Firm at 212-328-9568.
Understanding the Volunteer Protection Act
In 1997, the United States Congress passed the Volunteer Protection Act in an effort to promote volunteerism. This law protects nonprofit volunteers from civil liability for injuries or property damage as long as the volunteer:
- Was acting within the scope of their volunteer duties;
- Had proper licensing, if needed;
- Did not cause injuries or damage due to gross negligence, willful misconduct, recklessness, or a conscious disregard for the safety of the person injured;
- Was not using a motor vehicle, aircraft, or any other vehicle when the injuries or damage happened
Although state volunteer protection laws vary, this federal law uniformly protects nonprofit volunteers in all 50 states. However, the VPA does not protect the nonprofit organization from liability, only individual volunteers. Nonprofit organizations can still be held liable for negligence by their volunteers. Additionally, nonprofit volunteers can sue an organization they volunteered for if they suffered an injury due to the organization’s negligence.
New York Courts and Nonprofit Volunteer Liability
The New York State Supreme Court recently dismissed a negligence claim filed against a nonprofit volunteer, ruling that the defendant was statutorily immune from liability according to the federal Volunteer Protection Act. In Jeraci v. Cooper, the plaintiff and defendant were both members of the Sullivan County ATV Association, which is a 501(c)(3) nonprofit that raises charity funds through all-terrain vehicle rallies. The plaintiff sued the defendant, the ATV Association, and other parties for personal injuries he sustained during trail maintenance before an event.
In this example of the VPA in action, the plaintiff suffered an injury when his saw got stuck in a tree and the defendant used an excavator on the tree trunk, causing it to move suddenly and break the plaintiff’s leg. The defendant and his legal team filed a motion to dismiss the complaint, which was opposed by the plaintiff’s legal team. However, the court sided with the defense and dismissed the claim based on the protections guaranteed by the VPA.
How Can Nonprofits Minimize Volunteer Liability Risks?
While federal law protects nonprofit volunteers from liability in most situations, nonprofit organizations also have a responsibility to do what they can to reduce the risk of potential liability for both the organization and its volunteers. You can learn about minimizing nonprofit liability risks and protecting nonprofit volunteers from liability by contacting the experienced nonprofit lawyers of the Jennifer V. Abelaj Law Firm.
Some general best practices that can help minimize liability risk include:
- Use reasonable care when deciding whether to accept or reject volunteer applicants, including a screening process to identify risky volunteers.
- Properly train volunteers and provide professional guidance.
- Write and distribute a volunteer handbook with instructions for reporting and resolving any issues that arise.
- Have rules for the supervision of volunteers.
- Terminate volunteer agreements when the volunteer shows that they are unable to safely perform their duties.
- The nonprofit board members should be familiar with state and federal volunteer liability laws and situations in which a volunteer could be exempt from liability.
- Make sure that insurance policies adequately cover the potential liability risks for volunteers.
What Happens When a Nonprofit Volunteer is Sued?
If a nonprofit volunteer causes injuries or other losses due to negligence or another circumstance not covered by the Volunteer Protection Act, they could face liability. For example, imagine that a volunteer is on the way to conduct an errand for a nonprofit and causes a car accident, which injures the other driver. This incident would not be covered by the VPA because the injury involved a motor vehicle. Thus, the other driver would have the option to seek financial compensation by filing an insurance claim. In some cases, the injured person may have grounds to file a personal injury lawsuit for damages beyond the volunteer’s insurance coverage.
Lawsuits Against Nonprofits for Volunteer Negligence
If someone is injured in an incident involving a nonprofit volunteer but is unable to seek damages from the volunteer directly, they may consider filing a lawsuit against the nonprofit organization itself. While tort lawsuits against nonprofits are relatively rare, they can be extremely costly if the court awards a judgment to the party filing the lawsuit, or if the nonprofit needs to offer a settlement based on the facts of the case.
Nonprofit leaders should take preventative measures to minimize the risk of injuries and subsequent lawsuits. Board members should regularly evaluate the organization for potential risks and make specific plans for minimizing those risks. A well-managed organization with strong safety and supervision guidelines can drastically limit the organization’s risk of facing liability for preventable injuries.
Learn More From Our Nonprofit Lawyers
Liability is one of several important legal considerations for nonprofit organizations. Nonprofit leaders must account for their liability risks and take all appropriate measures to reduce these risks as much as possible. However, identifying these risks and crafting effective solutions can be a difficult process. This is why many nonprofit organizations enlist the help of experienced nonprofit lawyers who understand how to evaluate risks and take action to minimize these risks.
At the Jennifer V. Abelaj Law Firm, our team of veteran nonprofit lawyers has experience helping nonprofits limit their liability risks, respond to lawsuits for alleged negligence, and handle all other legal matters related to running a nonprofit. If you have questions related to protecting nonprofit volunteers from liability, you can learn more by contacting the Jennifer V. Abelaj Law Firm today at 212-328-9568.